Fiscal cracks plague The Egg

Report says landmark site has problems with leadership, losses

Updated 6:50 am, Friday, March 1, 2013

The moon rises as the setting sun graces the side of The Egg on the Empire State Plaza on Monday Feb. 6, 2012 in Albany, NY, as temperatures reached the high forties. (Philip Kamrass / Times Union ) Philip Kamrass Publication Date: February 7, 2012 Page: B1 Section: - - - Edition: TUTU

The moon rises as the setting sun graces the side of The Egg on the...

Times Union Staff photograph by Philip Kamrass Tarah Pullen of Troy, 13, ice skates in front of The Egg at the Empire State Plaza Ice Skating Rink despite the rain and cold in Albany, NY Sunday January 2, 2005. She was there with her brother, cousin and uncle.
(PHILIP KAMRASS)

ALBANY — The Egg is broken and in need of some hard-boiled management to make things right.

That's the thrust of a report from the state Authorities Budget Office that looked at finances and oversight for the popular performance space that looms over the Empire State Plaza.

Among the key findings: The site has been losing money since 2008 when one considers the state-subsidized overhead; the board of directors is rudderless and plagued by vacancies and absenteeism; and finances are scrambled by several bank accounts and weak spending controls.

"What the review team found was there was a lot of talk, (but) there was not necessarily a cohesive plan of action," ABO Director David Kidera said.

While there was no suggestion of wrongdoing, reviewers concluded the facility should be handed over to the state, with an agency such as the Office of General Services either running it or hiring a professional venue operator.

"Since Gov. Cuomo took office, the Office of General Services has played a key role in revamping, reconstructing and revitalizing the areas and facilities around and literally below The Egg," said Cuomo spokesman Rich Azzopardi. "We'll review the report and the recommendations."

The Egg is governed by a public benefit corporation. It operates as a nonprofit and is controlled by directors appointed by lawmakers and primarily the governor.

Known as much for its unique shape and center-stage spot in the city's skyline, The Egg offers an eclectic and busy schedule of performances ranging from B-list rock artists and stand-up comics to dance troupes, blues acts and jazz.

But with the state facing its own budgetary challenges, the venue's subsidy has been shrinking, a change that is threatening its viability.

The Egg's appropriation fell from $540,000 to $245,000 during the 2010-11 fiscal year, and dropped again to $220,000 in 2011-12. As of last year, it was running a $139,000 loss on revenue of $1.5 million.

The ABO contended that there's no real plan to deal with the shortfall. The board, technically made up of 18 appointed members, appears to be only slightly more active than some of the paintings gracing the adjacent Empire State Plaza concourse.

One board member hasn't come to a meeting in 10 years, and has reportedly moved to Florida. Another has missed the last seven meetings. There's been no permanent chairperson since 2011.

Acting Chairman Bryan Petraitis couldn't be reached on Thursday. The Egg's Executive Director Peter Lesser said the organization was still reviewing the 22-page report and couldn't yet comment.

"The board hasn't had a chance to meet for a response," he said, adding that it will meet March 21.

The Egg's financial travails have been known for a while. Two years ago, then-chairman Neil Davidoff said the facility was in a "death spiral." At the time, he stepped down to make way for a chairman with fundraising expertise.

In its written response, The Egg's management noted the ABO study was based on a year's worth of observations during a particularly challenging period.

The response also makes note of The Egg's key role in the cultural life of Albany. The venue typically offers several shows a week. The website lists upcoming acts including the Philadanco dance company, the Cowboy Junkies, jazzmen Bucky Pizzarelli and Frank Vignola, the traditional Irish band Altan and Hammer of the Gods, a Led Zeppelin tribute band.

It was unclear if other sections of the site were up to date. For instance, the director who hasn't come to a meeting in a decade — a Pataki-era appointee named Wendy Shave — isn't currently listed.